Leading Semiconductor Companies to Invest $4.4 Billion in Nanotechnology R&D in New York.

The New York state governor announced late on Tuesday that five of the world's leading semiconductor manufacturing companies have entered into agreements with the state to investments a total of $4.4 billion over the next five years to create the next generation of semiconductor manufacturing technologies and develop standards for semi fabs that process 450mm wafers.

Two Major Semiconductor Projects

The investment in the state is made up of two projects. The first project, which will be led by IBM and its partners (presumably by Globalfoundries and Samsung), will focus on development of two new generations of semiconductor process technologies. These new chips will power advanced systems of all sizes. This new commitment by IBM brings its total investment in chip technology in New York to more than $10 billion in the last decade.

The second project, which is a joint effort by Intel, IBM, TSMC, GlobalFoundries and Samsung, will focus on transforming existing 300mm production standards into the new 450mm standards. The new technology will produce more than twice the number of chips processed on today's 300mm wafers thus lowering costs to deliver future generations of technology with greater value and lower environmental impact.

"The Global 450 Consortium is a critical element to moving the semiconductor industry to next generation wafer size. This new technology will reduce the cost of production, increase productivity for manufacturers and reduce our environmental footprint on a per chip basis. The involvement of the College for Nanoscale and Science Engineering (CNSE) and the state of New York will enable the industry to meet its goals," said Paul Otellini, the president and CEO of Intel.

The agreements mark an historic level of private investment in the nanotechnology sector in New York. Research and development facilities will be located in Albany, Canandaigua, Utica, East Fishkill and Yorktown Heights. In addition, Intel separately agreed to establish its 450mm East Coast Headquarters to support the overall project management in Albany.

"Achieving 450mm manufacturing will be an important industry milestone that will lead to increased productivity and innovation," said Mark Liu, senior vice president of operations at TSMC.

"An increase in wafer size will significantly impact the semiconductor and electronics industries. Samsung Electronics will actively cooperate with global semiconductor companies to introduce the next generation 450mm wafe," said Oh-Hyun Kwon, the president of device solutions at Samsung.

"The unique mix of industry and technology partners located in New York is a key component of our strategy of expanding our local operations, including the Fab 8 campus in Malta, N.Y., which will be the world's most advanced semiconductor fab when it is completed in early 2013," the chief executive officer of Globalfoundries.

Billions of Dollars and Thousands of Jobs

No private company will receive any state funds as part of the agreement. To support the project, New York State will invest $400 million in the SUNY College for Nanoscale and Science Engineering (CNSE) in Albany, including $100 million for energy efficiency and low cost energy allowances. The state investment in CNSE will be made over a five year period. The state investment will be directed entirely to CNSE, and all tools and equipment acquired through the investment will be owned by CSNE.

"This unprecedented private investment in New York's economy will create thousands of jobs and make the state the epicenter for the next generation of computer chip technology. IBM, which is celebrating 100 years in New York, Intel, which is making its most significant investment in New York, as well as TSMC, Global Foundries and Samsung now recognize that the state is on its way to becoming a premier location for jobs, which is why these companies are making this major investment," said governor Andrew M. Cuomo.

This investment will have other beneficial economic impacts in New York. The project will include a private "Made in NY" initiative to support the potential purchase of $400 million in certain tools and equipment from companies around New York state to create, attract, and retain manufacturers and suppliers across the state.

In addition, the companies will support a $15 million fund to increase the role of minority and women owned businesses. These technology developments may facilitate the possibility of building a 450mm plant in New York state. These plants are projected to cost in excess of $10 billion each.

The investment in the two efforts will result in the creation and retention of approximately 6900 jobs. In addition, approximately 1500 construction jobs will be created in Albany and 400 in Utica. As a result of the investment 2500 existing jobs in Albany, Canandaigua and East Fishkill will be retained.